Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KAYDON CORP | d573564d8k.htm |
Exhibit 99.1
| News From: | For Immediate Release |
| Kaydon Corporation | Global Engineered Solutions |
KAYDON CORPORATION REPORTS
SECOND QUARTER 2013 RESULTS
Ann Arbor, Michigan – July 25, 2013
Kaydon Corporation (NYSE:KDN) today announced its results for the second fiscal quarter ended June 29, 2013.
Consolidated Results
Sales in the second quarter of 2013 were $117.3 million, compared to sales of $124.4 million in the second quarter of 2012.
Diluted earnings per share on a GAAP basis in the second quarter of each of 2013 and 2012 equaled $0.36. Adjusted earnings per share, as defined below, was $0.42 in both the second quarter of 2013 and the second quarter of 2012.
Adjusted EBITDA, as defined below, was $25.6 million during the second quarter of 2013, compared to $27.3 million, during the second quarter of 2012. Free cash flow, as defined below, for the second quarter of 2013 was $18.7 million compared to $13.3 million in the second quarter of 2012.
Adjusted gross margin was 38.6 percent in the second quarter of 2013, compared to 33.7 percent in the second quarter of 2012, as the Company continues to benefit from the increased operating leverage that has resulted from the restructuring activities undertaken in late 2012 and from ongoing operational improvements.
This press release includes certain non-GAAP measures, including adjusted gross margin, adjusted earnings per share, EBITDA, adjusted EBITDA and free cash flow. Readers should refer to the attached Reconciliation of Non-GAAP Measures exhibit for the reconciliations of the applicable GAAP measures to the non-GAAP measures presented.
1
Adjustments to GAAP results include certain items management considers in evaluating operating performance in each period. During the second quarter of 2013, Kaydon incurred $1.2 million of costs associated with due diligence and restructuring activities, and $1.2 million of non-cash amortization of previously incurred net actuarial losses related to postretirement benefit plans. During the current quarter the Company reviewed, and continues to review, several potential acquisitions. During the second quarter of 2012, adjustments included $1.6 million of acquisition-related costs primarily related to the Fabreeka acquisition and $1.1 million of non-cash amortization of previously incurred net actuarial losses related to postretirement benefit plans.
Orders and Backlog
Orders were $123.2 million in the second quarter of 2013, compared to $112.8 million in the second quarter of 2012 and $119.4 million in the first quarter of 2013. Backlog at June 29, 2013 was $158.1 million, compared to $169.5 million at June 30, 2012.
Financial Position and Free Cash Flow
Free cash flow was $18.7 million in the second quarter of 2013, compared to $13.3 million in the second quarter of 2012. During the quarter, the Company repaid $7.8 million of debt while paying dividends of $6.4 million.
As of June 29, 2013, the Company had cash and cash equivalents totaling $69.9 million and total borrowings outstanding of $164.7 million, resulting in net debt of $94.8 million.
Management Commentary
James O’Leary, Chairman and Chief Executive Officer commented, “The second quarter of 2013 was solid as we continue to successfully manage the variables within our control. Relative to the comparable quarter of 2012, we saw improved margins, free cash flow and orders despite a still challenging economic environment. In aggregate, bookings for our industrial businesses were solid with trends consistent with this year’s first quarter. As expected, military bookings were lower due to anticipated reductions in military activity and timing. However, this was more than offset by strong wind energy bookings in the quarter, supporting our view that the wind energy business has bottomed and will continue to show signs of improvement as we look a few quarters forward.
“Like most in the industrial space, we anticipate gradual improvement in the latter half of the year. While we wait for clearer signs of this pickup in economic activity, our principal focus remains managing the things within our control while we explore growth opportunities on the acquisition front. Our operational focus will translate in continued strength in both free cash flow and margins, as demonstrated so far this year, and further improvement when economic growth picks up in a more pronounced and sustained fashion.”
2
About Kaydon
Kaydon Corporation is a leading designer and manufacturer of custom engineered, performance-critical products, supplying a broad and diverse group of industrial, military, aerospace, medical, semiconductor and alternative energy equipment, and aftermarket customers.
Conference call information: At 11:00 a.m. Eastern time today, Kaydon will host a second quarter 2013 earnings conference call. The conference call can be accessed telephonically in a listen-only mode by dialing 1-888-471-3843 and providing the following passcode number: 800500. Participants are asked to dial in 10 minutes prior to the scheduled start time of the call.
Alternatively, interested parties are invited to listen to the conference call on the internet at:
http://w.on24.com/r.htm?e=654132&s=1&k=047D773357A6F973268DACF57BCDC690
or by logging on to the Kaydon Corporation website at: http://www.kaydon.com and accessing the conference call at the “Second Quarter 2013 Conference Call” icon.
To accommodate those that are unable to listen at the scheduled start time, a replay of the conference call will be available telephonically beginning at 2:00 p.m. Eastern time today through Wednesday, July 31, 2013 at 2:00 p.m. Eastern time. The replay is accessible by dialing 1-888-203-1112 and providing the following passcode number: 3897290.
Additionally, interested parties can access an archive of the conference call on the Kaydon Corporation website at http://www.kaydon.com.
# # #
This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 regarding the Company’s plans, expectations, estimates and beliefs. Forward-looking statements are typically identified by words such as “believes,” “anticipates,” “estimates,” “expects,” “intends,” “will,” “may,” “should,” “could,” “potential,” “projects,” “approximately,” and other similar expressions, including statements regarding general economic conditions, competitive dynamics and the adequacy of capital resources. These forward-looking statements may include, among other things, projections of the Company’s financial performance, anticipated growth, characterization of and the Company’s ability to control contingent liabilities, and anticipated trends in the Company’s businesses. These statements are only predictions, based on the Company’s current expectations about future events. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievements or that predictions or current expectations will be accurate. These forward-looking statements involve risks and uncertainties that could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
3
In addition, the Company or persons acting on its behalf may from time to time publish or communicate other items that could also be construed to be forward-looking statements. Statements of this sort are or will be based on the Company’s estimates, assumptions, and projections and are subject to risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. Kaydon does not undertake any responsibility to update its forward-looking statements or risk factors to reflect future events or circumstances except to the extent required by applicable law.
Certain non-GAAP measures are presented in this press release. These measures should be viewed as supplemental data, rather than as substitutes or alternatives to the most comparable GAAP measures.
| Contact: | Timothy J. Heasley READ IT ON THE WEB | |
| Senior Vice President & Chief Financial Officer http://www.kaydon.com | ||
| (734) 680-2018 |
4
KAYDON CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
| Net sales |
$ | 117,343 | $ | 124,373 | $ | 228,016 | $ | 240,839 | ||||||||
| Cost of sales |
73,751 | 83,371 | 143,053 | 158,238 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
43,592 | 41,002 | 84,963 | 82,601 | ||||||||||||
| Selling, general and administrative expenses |
26,379 | 23,532 | 52,012 | 47,796 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
17,213 | 17,470 | 32,951 | 34,805 | ||||||||||||
| Interest expense |
(896 | ) | (795 | ) | (1,792 | ) | (1,183 | ) | ||||||||
| Interest income |
74 | 54 | 140 | 179 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before taxes |
16,391 | 16,729 | 31,299 | 33,801 | ||||||||||||
| Provision for income taxes |
4,704 | 5,035 | 8,938 | 9,986 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 11,687 | $ | 11,694 | $ | 22,361 | $ | 23,815 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per share: |
||||||||||||||||
| Basic |
$ | 0.36 | $ | 0.37 | $ | 0.70 | $ | 0.74 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
$ | 0.36 | $ | 0.36 | $ | 0.70 | $ | 0.74 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends declared per share |
$ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 10.90 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average common shares outstanding: |
||||||||||||||||
| Basic |
31,818 | 31,755 | 31,815 | 31,744 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
31,847 | 31,776 | 31,843 | 31,769 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
KAYDON CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
| June 29, 2013 |
December 31, 2012 |
|||||||
| Assets: |
||||||||
| Cash and cash equivalents |
$ | 69,937 | $ | 53,556 | ||||
| Accounts receivable, net |
74,580 | 71,410 | ||||||
| Inventories, net |
97,345 | 97,933 | ||||||
| Other current assets |
17,189 | 20,354 | ||||||
|
|
|
|
|
|||||
| Total current assets |
259,051 | 243,253 | ||||||
| Property, plant and equipment, net |
115,595 | 121,233 | ||||||
| Assets held for sale |
7,850 | 6,530 | ||||||
| Goodwill, net |
189,196 | 190,323 | ||||||
| Other intangible assets, net |
47,201 | 49,177 | ||||||
| Other assets |
4,558 | 4,646 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 623,451 | $ | 615,162 | ||||
|
|
|
|
|
|||||
| Liabilities and Shareholders’ Equity: |
||||||||
| Accounts payable |
$ | 23,713 | $ | 15,555 | ||||
| Accrued expenses |
24,569 | 21,539 | ||||||
| Current portion long-term debt |
8,438 | 10,313 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
56,720 | 47,407 | ||||||
| Long-term debt |
156,250 | 166,062 | ||||||
| Other long-term liabilities |
71,738 | 70,917 | ||||||
|
|
|
|
|
|||||
| Total long-term liabilities |
227,988 | 236,979 | ||||||
| Shareholders’ equity |
338,743 | 330,776 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
$ | 623,451 | $ | 615,162 | ||||
|
|
|
|
|
|||||
KAYDON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
| Cash Flows from Operating Activities: |
||||||||||||||||
| Net income |
$ | 11,687 | $ | 11,694 | $ | 22,361 | $ | 23,815 | ||||||||
| Adjustments to reconcile net income to net cash from operating activities: |
||||||||||||||||
| Depreciation |
3,886 | 5,165 | 7,736 | 10,175 | ||||||||||||
| Amortization of intangible assets |
966 | 839 | 1,924 | 1,578 | ||||||||||||
| Amortization of stock awards |
963 | 904 | 1,607 | 1,795 | ||||||||||||
| Stock option compensation expense |
219 | 219 | 379 | 1,335 | ||||||||||||
| Excess tax benefits from stock-based compensation |
— | 29 | 156 | (673 | ) | |||||||||||
| Deferred financing fees |
123 | 124 | 246 | 470 | ||||||||||||
| Contributions to qualified pension plans |
(386 | ) | (1,535 | ) | (566 | ) | (2,169 | ) | ||||||||
| Net change in receivables, inventories and trade payables |
1,507 | 1,896 | 4,692 | (16,320 | ) | |||||||||||
| Net change in other assets and liabilities |
2,049 | (1,346 | ) | 8,781 | 3,940 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash from operating activities |
21,014 | 17,989 | 47,316 | 23,946 | ||||||||||||
| Cash Flows from Investing Activities: |
||||||||||||||||
| Capital expenditures |
(3,011 | ) | (4,815 | ) | (5,023 | ) | (8,122 | ) | ||||||||
| Dispositions of property, plant and equipment |
659 | 168 | 711 | 1,961 | ||||||||||||
| Acquisition of business, net of cash acquired |
— | (51,567 | ) | — | (51,567 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash used in investing activities |
(2,352 | ) | (56,214 | ) | (4,312 | ) | (57,728 | ) | ||||||||
| Cash Flows from Financing Activities: |
||||||||||||||||
| Proceeds from long-term borrowings |
— | 50,000 | — | 200,000 | ||||||||||||
| Repayments of long-term borrowings |
(7,812 | ) | (1,874 | ) | (11,687 | ) | (1,874 | ) | ||||||||
| Debt issuance costs |
— | — | — | (1,357 | ) | |||||||||||
| Cash dividends paid |
(6,423 | ) | (6,402 | ) | (12,843 | ) | (348,892 | ) | ||||||||
| Purchase of treasury stock |
— | — | (678 | ) | (1,199 | ) | ||||||||||
| Excess tax benefits from stock-based compensation |
— | (29 | ) | (156 | ) | 673 | ||||||||||
| Proceeds from exercise of stock options |
— | 97 | — | 112 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash from (used in) financing activities |
(14,235 | ) | 41,792 | (25,364 | ) | (152,537 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents |
(65 | ) | (1,119 | ) | (1,259 | ) | (156 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net increase (decrease) in cash and cash equivalents |
4,362 | 2,448 | 16,381 | (186,475 | ) | |||||||||||
| Cash and cash equivalents - Beginning of period |
65,575 | 36,291 | 53,556 | 225,214 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cash and cash equivalents - End of period |
$ | 69,937 | $ | 38,739 | $ | 69,937 | $ | 38,739 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
KAYDON CORPORATION
REPORTABLE SEGMENT INFORMATION
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
| Net sales |
||||||||||||||||
| Friction Control Products |
$ | 57,074 | $ | 71,525 | $ | 108,748 | $ | 137,328 | ||||||||
| Velocity Control Products |
30,796 | 24,488 | 63,383 | 48,787 | ||||||||||||
| Other Industrial Products |
29,473 | 28,360 | 55,885 | 54,724 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total consolidated net sales |
$ | 117,343 | $ | 124,373 | $ | 228,016 | $ | 240,839 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||
| Operating income |
||||||||||||||||
| Friction Control Products |
$ | 9,278 | $ | 10,174 | $ | 16,571 | $ | 21,993 | ||||||||
| Velocity Control Products |
5,844 | 5,708 | 13,352 | 11,550 | ||||||||||||
| Other Industrial Products |
3,430 | 3,020 | 5,502 | 4,929 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total segment operating income |
18,552 | 18,902 | 35,425 | 38,472 | ||||||||||||
| Items not allocated to segment operating income |
(1,339 | ) | (1,432 | ) | (2,474 | ) | (3,667 | ) | ||||||||
| Interest expense |
(896 | ) | (795 | ) | (1,792 | ) | (1,183 | ) | ||||||||
| Interest income |
74 | 54 | 140 | 179 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before taxes |
$ | 16,391 | $ | 16,729 | $ | 31,299 | $ | 33,801 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Company has two reporting segments: Friction Control Products and Velocity Control Products. The Company’s remaining operating segments are combined and disclosed as “Other Industrial Products.”
Kaydon Corporation
Reconciliation of Non-GAAP Measures
(In thousands)
| Three Months Ended | Six Months Ended | LTM | ||||||||||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||||||||
| Free cash flow, as defined (non-GAAP) |
||||||||||||||||||||||||
| Net cash from operating activities (GAAP) |
$ | 21,014 | $ | 17,989 | $ | 47,316 | $ | 23,946 | $ | 110,252 | $ | 58,019 | ||||||||||||
| Capital expenditures, net of dispositions |
(2,352 | ) | (4,647 | ) | (4,312 | ) | (6,161 | ) | (13,407 | ) | (13,215 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Free cash flow, as defined (non-GAAP) |
$ | 18,662 | $ | 13,342 | $ | 43,004 | $ | 17,785 | $ | 96,845 | $ | 44,804 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Kaydon’s management believes free cash flow, as defined above and a non-GAAP measure, is an important indicator of the Company’s ability to generate excess cash above levels required for capital investment to support future growth. However, it should be viewed as supplemental data, rather than as a substitute or alternative to the comparable GAAP measure.
| Three Months Ended | Six Months Ended | LTM | ||||||||||||||||||||||
| June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
June 29, 2013 |
June 30, 2012 |
|||||||||||||||||||
| Adjusted EBITDA, as defined (non-GAAP) |
||||||||||||||||||||||||
| Net income (GAAP) |
$ | 11,687 | $ | 11,694 | $ | 22,361 | $ | 23,815 | $ | (904 | ) | $ | 46,999 | |||||||||||
| Net interest (income)/expense |
822 | 741 | 1,652 | 1,004 | 3,456 | 995 | ||||||||||||||||||
| Provision for income taxes |
4,704 | 5,035 | 8,938 | 9,986 | 10,706 | 19,101 | ||||||||||||||||||
| Depreciation and amortization of intangible assets |
4,852 | 6,004 | 9,660 | 11,753 | 20,653 | 23,623 | ||||||||||||||||||
| Stock-based compensation expense (1) |
1,182 | 1,123 | 1,986 | 3,130 | 3,672 | 5,945 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| EBITDA, as defined (non-GAAP) |
23,247 | 24,597 | 44,597 | 49,688 | 37,583 | 96,663 | ||||||||||||||||||
| Arbitration costs |
— | — | — | 143 | 3,989 | 5,825 | ||||||||||||||||||
| Impairment and restructuring related costs (2) |
852 | 55 | 1,403 | 218 | 47,773 | 1,255 | ||||||||||||||||||
| Due diligence and purchase accounting costs |
328 | 1,551 | 358 | 1,551 | 847 | 1,922 | ||||||||||||||||||
| Recapitalization costs |
— | — | — | 267 | 266 | 267 | ||||||||||||||||||
| Curtailment gains |
— | — | — | — | — | (133 | ) | |||||||||||||||||
| Amortization of net actuarial loss |
1,172 | 1,127 | 2,344 | 2,253 | 4,869 | 3,658 | ||||||||||||||||||
| Pension Settlement |
— | — | — | — | 2,914 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted EBITDA, as defined (non-GAAP) |
$ | 25,599 | $ | 27,330 | $ | 48,702 | $ | 54,120 | $ | 98,241 | $ | 109,457 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (1) | Includes non-cash stock amortization expense and non-cash stock option expense. |
| (2) | Includes wind restructuring related impairments and other costs including fixed asset impairments of $43.0 million, inventory impairment of $1.1 million, accounts receivable reserves of $1.3 million, severance costs of $0.5 million and other program costs of $1.8 million for the twelve months ended June 29, 2013. |
Kaydon’s management believes EBITDA, as defined above and Adjusted EBITDA, as defined, both non-GAAP measures, are determinants of the Company’s capacity to incur additional senior capital to enhance future profit growth and cash flow growth. In addition, EBITDA is widely used by financial analysts and investors, and is utilized in measuring compliance with financial covenants in the Company’s credit agreement. Also, EBITDA is a metric used to determine payments under the Company’s annual incentive compensation program for senior managers. However, EBITDA, as defined, and Adjusted EBITDA, as defined should be viewed as supplemental data, rather than as substitutes or alternatives to the comparable GAAP measure.
Kaydon Corporation
Reconciliation of Non-GAAP Measures (continued)
(In thousands, except per share data)
| Three months ended June 29, 2013 | ||||||||||||||||||||||||||||||||||||
| Non-operating items, as defined by the Company | ||||||||||||||||||||||||||||||||||||
| Wind restructuring and impairment charge |
Arbitration Costs |
Restructuring/ Severance Costs |
Due Diligence/ Purchase Accounting Costs |
Recapitalization Costs |
Settlement / Curtailment Gains/Losses |
Amortization of Actuarial Loss |
Adjusted (Non-GAAP) |
|||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||
| Net Sales |
$ | 117,343 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 117,343 | ||||||||||||||||||
| Gross profit |
43,592 | 939 | — | — | — | — | — | 759 | 45,290 | |||||||||||||||||||||||||||
| Gross margin |
37.1 | % | 0.8 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.6 | % | 38.6 | % | ||||||||||||||||||
| S, G & A expenses |
26,379 | (87 | ) | — | — | 328 | — | — | 413 | 25,725 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Operating income |
17,213 | 852 | — | — | 328 | — | — | 1,172 | 19,565 | |||||||||||||||||||||||||||
| Interest, net |
(822 | ) | — | — | — | — | — | — | — | (822 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Income before taxes |
16,391 | 852 | — | — | 328 | — | — | 1,172 | 18,743 | |||||||||||||||||||||||||||
| Tax provision * |
4,704 | 245 | — | — | 94 | — | — | 336 | 5,379 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net income |
11,687 | $ | 607 | $ | — | $ | — | $ | 234 | $ | — | $ | — | $ | 836 | $ | 13,364 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Diluted EPS |
$ | 0.36 | $ | 0.02 | $ | — | $ | — | $ | 0.01 | $ | — | $ | — | $ | 0.03 | $ | 0.42 | ||||||||||||||||||
| Three months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
| Non-operating items, as defined by the Company | ||||||||||||||||||||||||||||||||||||
| Wind restructuring and impairment charge |
Arbitration Costs |
Restructuring/ Severance Costs |
Due Diligence/ Purchase Accounting Costs |
Recapitalization Costs |
Settlement / Curtailment Gains/Losses |
Amortization of Actuarial Loss |
Adjusted (Non-GAAP) |
|||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||
| Net Sales |
$ | 124,373 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 124,373 | ||||||||||||||||||
| Gross profit |
41,002 | — | — | — | 118 | — | — | 832 | 41,952 | |||||||||||||||||||||||||||
| Gross margin |
33.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.7 | % | 33.7 | % | ||||||||||||||||||
| S, G & A |
23,532 | — | — | 55 | 1,433 | — | — | 295 | 21,749 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Operating income |
17,470 | — | — | 55 | 1,551 | — | — | 1,127 | 20,203 | |||||||||||||||||||||||||||
| Interest, net |
(741 | ) | — | — | — | — | — | — | — | (741 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Income before taxes |
16,729 | — | — | 55 | 1,551 | — | — | 1,127 | 19,462 | |||||||||||||||||||||||||||
| Tax provision * |
5,035 | — | — | 17 | 467 | — | — | 339 | 5,858 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net income |
$ | 11,694 | $ | — | $ | — | $ | 38 | $ | 1,084 | $ | — | $ | — | $ | 788 | $ | 13,604 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Diluted EPS |
$ | 0.36 | $ | — | $ | — | $ | 0.00 | $ | 0.03 | $ | — | $ | — | $ | 0.02 | $ | 0.42 | ||||||||||||||||||
Kaydon’s management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and Adjusted earnings per share - diluted, provide investors with additional information to assess the Company’s financial performance. However, these measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures.
| * | Taxed at effective tax rate for each quarter. |
Kaydon Corporation
Reconciliation of Non-GAAP Measures (continued)
(In thousands, except per share data)
| Six months ended June 29, 2013 | ||||||||||||||||||||||||||||||||||||
| Non-operating items, as defined by the Company | ||||||||||||||||||||||||||||||||||||
| Wind restructuring and impairment charge |
Arbitration Costs |
Restructuring/ Severance Costs |
Due Diligence/ Purchase Accounting Costs |
Recapitalization Costs |
Settlement / Curtailment Gains/Losses |
Amortization of Actuarial Loss |
Adjusted (Non-GAAP) |
|||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||
| Net Sales |
$ | 228,016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 228,016 | ||||||||||||||||||
| Gross profit |
84,963 | 1,513 | — | — | — | — | — | 1,518 | 87,994 | |||||||||||||||||||||||||||
| Gross margin |
37.3 | % | 0.7 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.7 | % | 38.6 | % | ||||||||||||||||||
| S, G & A expenses |
52,012 | (110 | ) | — | — | 358 | — | — | 826 | 50,938 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Operating income |
32,951 | 1,403 | — | — | 358 | — | — | 2,344 | 37,056 | |||||||||||||||||||||||||||
| Interest, net |
(1,652 | ) | — | — | — | — | — | — | — | (1,652 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Income before taxes |
31,299 | 1,403 | — | — | 358 | — | — | 2,344 | 35,404 | |||||||||||||||||||||||||||
| Tax provision * |
8,938 | 401 | — | — | 102 | — | — | 669 | 10,110 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net income |
22,361 | $ | 1,002 | $ | — | $ | — | $ | 256 | $ | — | $ | — | $ | 1,675 | $ | 25,294 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Diluted EPS |
$ | 0.70 | $ | 0.03 | $ | — | $ | — | $ | 0.01 | $ | — | $ | — | $ | 0.05 | $ | 0.79 | ||||||||||||||||||
| Six months ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
| Non-operating items, as defined by the Company | ||||||||||||||||||||||||||||||||||||
| Wind restructuring and impairment charge |
Arbitration Costs |
Restructuring/ Severance Costs |
Due Diligence/ Purchase Accounting Costs |
Recapitalization Costs |
Settlement / Curtailment Gains/Losses |
Amortization of Actuarial Loss |
Adjusted (Non-GAAP) |
|||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||
| Net Sales |
$ | 240,839 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 240,839 | ||||||||||||||||||
| Gross profit |
82,601 | — | — | — | 118 | — | — | 1,663 | 84,382 | |||||||||||||||||||||||||||
| Gross margin |
34.3 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.7 | % | 35.0 | % | ||||||||||||||||||
| S, G & A |
47,796 | — | 143 | 218 | 1,433 | 1,058 | — | 590 | 44,354 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Operating income |
34,805 | — | 143 | 218 | 1,551 | 1,058 | — | 2,253 | 40,028 | |||||||||||||||||||||||||||
| Interest, net |
(1,004 | ) | — | — | — | — | 247 | — | — | (757 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Income before taxes |
33,801 | — | 143 | 218 | 1,551 | 1,305 | — | 2,253 | 39,271 | |||||||||||||||||||||||||||
| Tax provision * |
9,986 | — | 41 | 64 | 467 | 378 | — | 666 | 11,602 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net income |
$ | 23,815 | $ | — | $ | 102 | $ | 154 | $ | 1,084 | $ | 927 | $ | — | $ | 1,587 | $ | 27,669 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Diluted EPS |
$ | 0.74 | $ | — | $ | 0.00 | $ | 0.00 | $ | 0.03 | $ | 0.03 | $ | — | $ | 0.05 | $ | 0.86 | ||||||||||||||||||
Kaydon’s management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and Adjusted earnings per share - diluted, provide investors with additional information to assess the Company’s financial performance. However, these measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures.
| * | Taxed at effective tax rate for each quarter. |